Officials from both camps have repeatedly told the media how little headway has been made in the talks, but the resignation of the Palestinian side would mark a new low in the negotiations which started in July after a three year hiatus.

In an interview with Egyptian CBC television, Abbas suggested the negotiations would continue even if the Palestinian delegation stuck to its decision, Reuters reported.

"Either we can convince it to return, and we're trying with them, or we form a new delegation," the Palestinian President said.

According to Reuters, it was unclear from Abbas's interview when exactly his negotiators had quit, but Abbas said he would need about a week to resume the talks.

In a statement to Reuters TV on Wednesday, chief Palestinian negotiator Saeb Erekat did not elaborate on the report of his resignation, but said told the media that all upcoming talks with Israel had been frozen.

"In reality, the negotiations stopped last week in light of the settlement announcements last week," Erekat said.